Year: 2016 | Month: September | Volume 61 | Issue 3
Analysis of the Effects of Microfinance Banks Loans on the Livelihood of Small-Holder Farmers in Delta State, Nigeria
DOI:10.5958/0976-4666.2016.00049.8
Abstract:
The paper assessed farmer’s perception of the effects of microfinance banks loans on their livelihood using both primary and secondary data. A multi-stage random sampling technique was used in drawing a sample size of 750 respondent farmers and 15 microfinance banks. Data were analyzed using tables, frequencies, percentages, means, financial ratio and chi-square. The results show that microfinance banks have distributed different sizes of loans to farmers irrespective of their socio-economic characteristics and those farmers’ beneficiaries have been positively influenced by microfinance banks loans thereby improving their living standards. The repayment rate of 79% was relatively good. The major problem of loan administration includes high interest rate, collateral requirement, difficulty in accessing credit, distance, transportation cost and late granting of loans among others. For optimum benefit it is suggested that micro-finance banks should work with other integrated rural development agencies that are geared towards improving the wellbeing of the rural small-holder farmers.
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